FULE SHAHU AMBEDKAR Z P KARMACHARI SAH PAT SANSTHA,WASHIM V. INCOME TAX OFFICER WARD-2, AKOLA

ITA 68/NAG/2024

AI Insights

The case involves an appeal by Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha against an order by the CIT(A) which upheld a disallowance of deduction under section 80P of the Income Tax Act, 1961. The disallowance was made by the CPC due to a delay in filing the income tax return for the assessment year 2019-20, invoking section 80AC. The tribunal examined whether the CPC had the authority to make such a disallowance prior to the amendment of section 143(1)(a) by the Finance Act, 2021, which came into effect on April 1, 2021. The tribunal, referencing decisions from other benches, concluded that the CPC did not have this authority for the period in question, leading to the reversal of the CIT(A)'s decision and the allowance of the assessee's appeal.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833668 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Appeal Filed On: 09-02-2024
• Other Referred Cases: Shree Shiv Sahyadri Nagari Sahakari Pathsanstha Maryadit vs. ITO, Food Corporation of India Employees Co-op. Credit Society Ltd. vs. ADIT
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJIT KUMAR SAHA

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR “SMC” BENCH : NAGPUR (Through virtual) BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER I.T.A.No.68/NAG/2024 (Assessment Year 2019-2020) Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha, Anandwadi, R.A. College Road, Washim-444505 PAN : AAAAF 5104 D vs. ITO, Ward-2, Akola. (Appellant) (Respondent) For Assessee : None For Revenue : Shri Surjit Kumar Saha, Sr.DR (virtual) Date of Hearing : 02.02.2026 Date of Pronouncement : 03.02.2026 ORDER This appeal at the instance of the assessee is directed against the order of ADDL/JCIT (Appeals)-3, Delhi [“CIT(A)”], dated 13/12/2023 passed u/s. 250 of the Income Tax Act, 1961 (for short, 'the Act') which is arising out of intimation dated 03.01.2021 passed u/s. 143(1)(a) of the Act for the Assessment Year 2019-20. (A.Y.) 2. When the case called for, none appeared on behalf of the assessee. I, therefore, proceed to adjudicate the appeal exparte qua assessee with the assistance of Ld. Departmental Printed from counselvise.com 2 ITA.No.68/NAG/2024 (Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha) Representative (DR) and the statement of facts placed on record. I observe that the sole grievance of the assessee is against the prima-facie adjustments made by the CPC in the intimation issued u/s. 143(1)(a) of the Act denying deduction u/s. 80P of the Act on account of delay in filing the return of income by invoking section 80AC of the Act. 3. It is stated that case of the assessee is covered by plethora of decisions consistently holding that such power to make the alleged disallowance has been conferred to the CPC w.e.f. 01.04.2021 and therefore, the impugned disallowance deserves to be deleted. 4. On the other hand, Ld. DR supported the order of the Ld.CIT(A). 5. I have heard Ld. DR and perused the records placed before me. The only grievance of the assessee is against the disallowance of deduction u/s. 80P of the Act by the CPC vide processing return u/s. 143(1)(a)(v) dated 03.01.2021 passed for the A.Y. 2019-20 denying deduction by invoking section 80AC of the Act as the return has been filed belatedly on 30.09.2020. I find that this issue has been dealt with by the coordinate benches consistently in plethora of decisions. I take note of the decision of the coordinate bench of Pune Tribunal in the case of Shree Shiv Sahyadri Nagari Sahakari Pathsanstha Maryadit vs. ITO in ITA No. 1788/PUN/2024, Printed from counselvise.com 3 ITA.No.68/NAG/2024 (Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha) dated 07.11.2024 and that of this Tribunal in the case of Food Corporation of India Employees Co-op. Credit Society Ltd. vs. ADIT in ITA No. 422/NAG/2022, dated 22/03/2024 holding that prior to amendment brought in Finance Act, 2021, amending sub-clause (v) of section 143(1)(a), CPC was not vested with the powers to make disallowance u/s. 80AC of the Act denying deduction u/s. 80P of the Act on account of delay in furnishing the income tax return. Since passing of the intimation by the CPC in the instant case, is prior to the amendment effective from 01.04.2021, I respectfully following the judicial precedents, hold that impugned disallowance u/s. 80P of the Act by the CPC is uncalled for. Accordingly, the finding of the Ld.CIT(A) is reversed and the impugned disallowance/adjustments made by the CPC is deleted. Effective grounds of appeal raised by the assessee on merits of the case are allowed as per terms indicated herein above. 6. In the result, appeal of the Assessee is allowed. Order pronounced in the open Court on 03.02.2026 Sd/- Sd/- [MANISH BORAD] ACCOUNTANT MEMBER Dated : 03rd February, 2026 vr/- Printed from counselvise.com 4 ITA.No.68/NAG/2024 (Fule Shahu Ambedkar Z.P. Karmachari Sah Pat Sanstha) Copy to 1. The appellant 2. The respondent 3. The Pr.CIT, Nagpur concerned. 4. D.R. ITAT, SMC Bench, Nagpur. 5. Guard File. By Order //True Copy // Senior Private Secretary ITAT, Nagpur Printed from counselvise.com "